Continental AG

Earnings Release • Dec 10, 2008

News Details

Ad-hoc | 10 December 2008 16:19

Continental AG Draws Consequences from the Significant Downturn in the Industry

Continental AG / Profit Warning/Dividend

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Hanover, December 10, 2008. Continental AG, Hanover, is drawing further
necessary consequences for the closing fiscal year 2008 following an
extensive analysis of the substantial negative development in the
automotive industry in the last six weeks.

Based upon these adjustments and the latest figures available, an EBIT
margin of 7.5% to 8.0% is viewed to be attainable for fiscal 2008. This
EBIT margin figure is before the adjustment for amortization and
depreciation resulting from the purchase price allocation (PPA) as well as
integration and restructuring expenses.

Furthermore, it is considered to refrain from paying dividends for fiscal
2008 to bolster the consistent reduction of financial liabilities. In 2008,
the company paid a dividend of €2 per share for fiscal 2007.

Furthermore, goodwill impairment of up to one billion euros is possible in
the Automotive Group already on the 2008 balance sheet, in view of the
drastic drop in car sales predicted for 2009, especially in the markets in
Western Europe and North America.

Thanks to the continuing strong business development in the Rubber Group, a
substantial free cash flow is expected for 2008 on the whole. In addition
to the cash flow provided by the sale of company units undertaken to date
(including the EMD business to Brose) and the extensive conversion of the
convertible bond with an original maturity date of May 2011, these free
funds noticeably help reduce the net financial indebtedness despite the
adverse market climate.
10.12.2008 Financial News transmitted by DGAP

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Language: English
Issuer: Continental AG
Vahrenwalder Straße 9
30165 Hannover
Deutschland
Phone: +49 (0)511 938-1068
Fax: +49 (0)511 938-1080
E-mail: ir@conti.de
Internet: www.conti.de
ISIN: DE0005439004
WKN: 543900
Indices: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover,
Hamburg, Luxembourg, Stuttgart; Freiverkehr in Berlin,
München, Düsseldorf; Terminbörse EUREX; Foreign Exchange(s)
SWX

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